Who determines if a matter is subject to arbitration in an All Dogs Unleashed dispute?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator must have at least 5 years of significant experience in franchise law.
Any issue as to whether a matter is subject to arbitration will be determined by the arbitrator.
A judgment may be entered on the arbitration award by any state or federal court in Carrollton, Texas.
- 8.2.3 In any arbitration proceeding, each party will submit or file any claim that would constitute a compulsory counterclaim (as defined by the then-current Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates.
Any such claim that is not submitted or filed in the proceeding will be forever barred.
The decision of the arbitrator is final and binding on all parties to the dispute; however, the arbitrator may not under any circumstances: (1) stay the effectiveness of any pending termination of this Agreement; (2) assess punitive or exemplary damages; (3) certify a class or a consolidated action; or (4) make any award that extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
The arbitrator must have the right to make a determination as to any procedural matters that a court of competent jurisdiction would be permitted to make in the state in which our main office is located.
Further, the arbitrator must decide all factual, procedural, or legal questions relating in any way to the dispute between the parties, including, without limitation, questions relating to whether Section 8.2 is applicable and enforceable as against the parties; the subject matter, timeliness, and scope of the dispute; any available remedies; and the existence of unconscionability and/or fraud in the inducement.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the arbitrator determines whether a specific issue is subject to arbitration. The selected arbitrator must possess a minimum of five years of experience in franchise law.
This means that if a dispute arises between All Dogs Unleashed and a franchisee, the arbitrator, rather than a court, will decide whether the dispute falls under the arbitration clause of the franchise agreement. This is a significant point for prospective franchisees, as it dictates the process by which disputes will be resolved.
Furthermore, the arbitrator's decision is final and binding, although their powers are limited. For example, the arbitrator cannot stay a pending termination of the agreement, award punitive damages, certify a class action, or modify any lawful term of the agreement. The arbitrator also has the authority to make determinations on procedural matters, similar to what a court would do in the state where All Dogs Unleashed's main office is located. The arbitrator is responsible for deciding factual, procedural, and legal questions related to the dispute, including the applicability and enforceability of the arbitration section, the scope and timeliness of the dispute, available remedies, and any claims of unconscionability or fraud.